New Arena (formerly Prairie Surf)

[jn1780]

Scot Matteson (Bricktown Boardwalk fame) said in an interview that he's looking forward to working with PSM in the future.

Does he plan to build a legendary film studio somewhere?

[jn1780]

I've said Crossroads. LOTS of inactive but ready space.

I don't think PSM can be too picky on this.

There isn't a lot of already built options. The old Dillard's space has potential. Some work was done to turn that into a convention center. They could make a few areas with high ceilings within that building.

[Bowser214]

He didn’t elaborate on anything like where or when.

[Pete]

Rachel Cannon resigns as CEO of OKC's Prairie Surf Studios

Article doesn't really explain why she is leaving but hints at losing the Cox Center at the end of 2025 as a part of it.

"With the reality of the building going away, Cannon has decided to step away from infrastructure but plans to continue her mission of building something special for Middle America right here at home," according to the announcement.

[OkieBerto]

Pete beat me to it.

[jn1780]

That seems to indicate they are not very optimistic about the future of having a financially viable physical movie studio or at least she doesn't. It has been mentioned before, but they were getting an awesome deal from the city.

The city may not have to wait until December 2025................


or it could be something simple as she doesn't want to deal with extra stress and workload of relocation

[okatty]

Good articles today in the NYT about the film industry in various states including Okla. With a lot of focus on Tx and Okla. I read it in the app so if you have access check it out. Title and byline of one:

Oklahoma’s Booming Film Industry Has Texas’ Attention
To attract movie and television production, states must try to offer the best incentives. The competition drives spending on Hollywood subsidies ever higher.

[Tydude]

https://www.koco.com/article/oklahom...lkway/60551551

[Laramie]

Any news on PSM site being selected as the official site for the new $1 billion downtown arena.

[traxx]

Any news on PSM site being selected as the official site for the new $1 billion downtown arena.

They're putting the new arena at Penn Square Mall? Is there even enough room for that? It doesn't make sense.

[Tyson]

They're putting the new arena at Penn Square Mall? Is there even enough room for that? It doesn't make sense.

Haha. I definitely have thought about that before.

[jn1780]

They're putting the new arena at Penn Square Mall? Is there even enough room for that? It doesn't make sense.

That image kind of looks like a greenhouse also.

[PhiAlpha]

That image kind of looks like a greenhouse also.

If Paycom is still the sponsor, it will really look like a green house lol.

[TheTravellers]

Just read this:

". Nationally, film incentives are
universally found to be a poor investment, costing more than $100,000
per job for the few permanent jobs that are created, according to the Tax
Foundation.135 That’s certainly the case in Oklahoma, where the IEC found
that $27 million in film rebates had increased permanent in-state production
company employment by just 145 in 15 years. The IEC further calculated
that the industry returned only 52 cents in Oklahoma tax dollars for every
dollar spent.136 Despite these poor returns, the legislature in 2020 doubled
the annual cap on film credits to $8 million, exempted some films from that
cap, and extended the sunset date.137 In 2021, lawmakers created a new film
incentive that will reduce state revenue by $30 million annually for ten years
for rebates to filmmakers.138"

It's from this - https://okpolicy.wpenginepowered.com...NT.pdf#page=43

[PhiAlpha]

Just read this:

". Nationally, film incentives are
universally found to be a poor investment, costing more than $100,000
per job for the few permanent jobs that are created, according to the Tax
Foundation.135 That’s certainly the case in Oklahoma, where the IEC found
that $27 million in film rebates had increased permanent in-state production
company employment by just 145 in 15 years. The IEC further calculated
that the industry returned only 52 cents in Oklahoma tax dollars for every
dollar spent.136 Despite these poor returns, the legislature in 2020 doubled
the annual cap on film credits to $8 million, exempted some films from that
cap, and extended the sunset date.137 In 2021, lawmakers created a new film
incentive that will reduce state revenue by $30 million annually for ten years
for rebates to filmmakers.138"

It's from this - https://okpolicy.wpenginepowered.com...NT.pdf#page=43

Similar to the economic argument for building a new arena despite it not being directly profitable...I wonder if this takes into account the benefits from the publicity?

[Sean21]

Similar to the economic argument for building a new arena despite it not being directly profitable...I wonder if this takes into account the benefits from the publicity?

I’m guessing psm will not draw 30k people downtown tomorrow evening.

[PhiAlpha]

I’m guessing psm will not draw 30k people downtown tomorrow evening.

the post I was responding to referred to reasons for doing away with the film tax credit, not prairie surf in particular, and referenced the last 20 years of the film industry in OK. Doing away with it would impact the entire effect the entire film industry in OK. Millions of people have seen movies like Killers of the Flower moon and the state got a bunch of publicity from Twister, etc.

No, Penn square mall will not bring 30k people downtown tomorrow because it is not located downtown.

[Tydude]

KFOR is reporting that the new Arena will be at the old Cox Convention Center site.

[Urbanized]

^^^^^^^
Yes, as I have repeatedly stated, that is and has been the selected location, and that the first confirmation would come not in the form of an announcement but rather when the development agreement was on the agenda. KFOR is simply reporting what appears on next Tuesday's council agenda (for reference this is item IX BG on the consent docket):

"Development Agreement with the Oklahoma City Public Property Authority and PBC Sports & Entertainment, LLC, for the construction of the New Arena, generally located between Sheridan Avenue and Reno Avenue and between Robinson Avenue and E. K. Gaylord Boulevard. Ward 7"

[GaryOKC6]

The formal announcement of this location should come in the next 2 weeks.

[GaryOKC6]

OKC City Council to consider arena development agreement on Tuesday
05/17/2024
Link to story
Link to the agreement
On Tuesday, May 21, the Oklahoma City Council will consider approving a development agreement for the City’s new arena. The agreement will be made between the City and PBC Sports and Entertainment, LLC (PBCS&E), owners of the Oklahoma City Thunder and the Oklahoma City Blue.
Voters approved funding for the new arena in December.
The development agreement is based on the original 2008 development agreement, which was used to improve the current arena and build the practice facility used by the Thunder. It also aligns with the Letter of Intent approved by City Council in September 2023.
The development agreement covers major elements of the process of designing and constructing the new arena.
Agreement overview
Funding
• OKC agrees to spend a minimum of $900 million on the new arena. The new arena will be funded by (listed in order of how the money will be spent):
o $78 million from MAPS 4.
o $50 million from PBCS&E.
o a minimum of $772 million, financed through the 72-month, one-cent special sales tax.
• Any surplus revenue from the one-cent special sales tax after the arena's construction and repayment of financing costs will be allocated to capital improvements and maintenance of the new arena.
• The agreement acknowledges that there are no other sources of revenue to fund the new arena, and so the agreement provides that if the costs appear to exceed available budgeted funds, the parties will work together to value engineer the project. PBCS&E can privately fund portions of the project to avoid removing them through value engineering.
Location
• The agreement identifies the City-owned former site of the Cox Convention Center as the site of the new arena. The City will own and be responsible for maintaining and operating the new arena.
• Approximately 1.4 acres of the site will be reserved for a potential future intercity transit hub.
• PBCS&E can negotiate with the City for a ground lease to develop any unused property on the new arena site at market rate, with revenue from the lease to be used for the arena’s maintenance and improvements.
Construction
• The agreement outlines a collaborative process between the City and PBCS&E in the planning and construction of the building.
• The City and PBCS&E will work together to select the arena’s project consultant, engineer, architect, design and other aspects of construction.
• The new arena will be at least 750,000 square feet.
• The new arena will be built to:
o Benefit the residents of Oklahoma City.
o Meet NBA specifications and requirements.
o Maximize team revenues, ensuring the sustainability of major league professional sports in Oklahoma City.
• The project includes the construction of a new parking garage on the arena site with at least 650 spaces.
Timing
• The Thunder will continue to play home games at the Paycom Center until the new arena opens.
• The agreement maintains the completion date of 2029 as outlined in the letter of intent but provides a path to a target completion date of June 2028, with a contractual obligation to open the new arena by June 2030.
• The Thunder’s 25-year commitment to remain in Oklahoma City begins when they move into the new arena.
Arena Background
The Oklahoma City Thunder has called Oklahoma City home since 2008. In 2023, the initial term of the 2008 use license agreement expired. The Team exercised an option to extend the agreement for three years to allow time to develop a plan for a new arena to keep the Thunder in Oklahoma City for 25 years after the new arena opens. In December 2023, Oklahoma City voters overwhelmingly approved a penny sales tax to build a new, publicly owned arena. The new arena will be the fourth downtown arena in city history constructed by the public

[BoulderSooner]

duplicate

[BoulderSooner]

from the agreement

EXHIBIT A NEW ARENA SITE The New Arena Site is generally located between Sheridan Avenue and Reno Avenue and between Robinson Avenue and E K Gaylord Boulevard in Oklahoma City, Oklahoma. The City/Authority reserves adequate space for the transit hub, approximately 60,000 square feet (1.377 Ac.) of land, accessible from E.K. Gaylord Boulevard and as close to the Santa Fe Train Station as reasonably possible. Any amount of said land in excess of 1.377 Ac. must be mutually agreed upon by the Parties. Said land is to be for transit hub use and may be combined with other facilities or buildings. Said land will be specifically located during the site plan design of the New Arena. [Legal description and site depiction attached.]

[BoulderSooner]

from the agreement

EXHIBIT A NEW ARENA SITE The New Arena Site is generally located between Sheridan Avenue and Reno Avenue and between Robinson Avenue and E K Gaylord Boulevard in Oklahoma City, Oklahoma. The City/Authority reserves adequate space for the transit hub, approximately 60,000 square feet (1.377 Ac.) of land, accessible from E.K. Gaylord Boulevard and as close to the Santa Fe Train Station as reasonably possible. Any amount of said land in excess of 1.377 Ac. must be mutually agreed upon by the Parties. Said land is to be for transit hub use and may be combined with other facilities or buildings. Said land will be specifically located during the site plan design of the New Arena. [Legal description and site depiction attached.]

PARKING STRUCTURE Parking Garage – minimum 650 spaces

[BoulderSooner]

3.1.7 Ground Lease and Ancillary Development. EXECUTION VERSION (a) Upon the Team’s request, the Parties agree to negotiate in good faith and seek to finalize and execute one or more ground leases (collectively, the “Ground Lease”), which would grant the Team or its Affiliate an exclusive non-assignable contract option for a ground lease and development rights for all areas on the New Arena Site, as described in Exhibit A, other than areas used for the purposes of the New Arena Project, including the New Arena, parking structure, or transit hub as described in Exhibit A. Because the areas the Ground Lease would cover are properties acquired with General Obligation Bonds earmarked for convention center purposes, the Parties acknowledge that any such Ground Lease must require the payment by the Team or its Affiliate of consideration to the City in the form of fair market value in cash, with such consideration to be used solely for Proposition 8 of 1968 General Obligation Bond purposes, which purposes the Parties agree will include the use of the consideration for future capital maintenance of and improvements to the New Arena, as contemplated by paragraph (c) of this Section 3.1.7. The term of any Ground Lease will be coterminous with the expiration or early termination of the License Agreement. (b) In conjunction with the potential finalization of the Ground Lease, the Team or any of its Affiliates would have the right to develop ancillary development(s) on the New Arena Site. Any ancillary development(s) shall be subject to Applicable Law and NBA Rules and Regulations. (c) Subject to annual appropriations, any payments made by the Team (or its Affiliate) under the terms and conditions of the Ground Lease will be used by the City and/or Authority to fund future capital maintenance of and improvements to the New Arena in accordance with Proposition 8 of the 1968 General Obligation Bond authorizations. (d) In addition, the City and Authority agree that, with respect to the Team’s contract option to develop all areas on the New Arena Site other than the New Arena, parking structure, or transit hub, the City and Authority will not (i) solicit, seek, negotiate, or encourage submission of inquiries or proposals from, or accept any offers from or have any substantive discussions with any other party relative to any potential disposition, sale, ground lease or sale and leaseback of all or any portion of such areas; nor otherwise (ii) develop and/or improve upon such areas, except for the purposes of the New Arena Project, including the New Arena, parking structure, or transit hub as described in Exhibit A.